Wales will introduce the same minimum unit price on Alcohol on March 2nd, 2020. It is notable, however, that Cider is a more popular product in Wales than in Scotland in terms of total market share. Cider enjoys a higher market share in Wales than in any other part of the UK.
UK Mainland Cider Market Share - 2019
|England 13.6%||Scotland 9.4%||Wales 17.1%|
Beer (in which Lager is a subcategory) is likely to remain the strongest alcohol subcategory in Wales. It enjoys 35% market share and experienced the highest growth of any alcohol subcategory of over 2.1%. None of the beer products that appear in the Top Ten list are likely to be affected by MUP as their prices are typically already compliant.The more interesting story resides in Spirits, which saw dramatic shifts when MUP first came into effect in Scotland. Previous research carried out by The Retail Data Partnership (TRDP) identified customers switching to premium brands as the prices of budget brands increased. This was especially noticeable in Vodka. Where’s Glen’s lost substantial market share to Smirnoff as a result of a new, similar price point with no change in quality or brand appeal. As both non-beer products in the Top Ten list are Vodkas at varying price points, we will be watching to see what changes in Welsh Vodka sales in the coming months.
|2. Stella Artois Pm4/649||£174.78|
|3. Chekov Vodka Pm679||£166.54|
|4. Stella Artois 4.8%||£159.91|
|5. Stella Artois Pm4/579||£149.87|
|6. Carling Pm4/489||£141.76|
|7. Carling Pm4/549||£137.52|
|8. Fosters Pm1000||£135.5|
|9. Fosters Pm4/550||£130.54|
|10. Smirnoff Red Pm1479||£127.24|
This is less of a data driven point but more of an observation over the past two years. As the price advantage that supermarkets hold is wiped out, shoppers start to make choices based on different criteria. Obviously, convenience stores are convenient, the clue in the name but is this enough? The discounters especially have tailored their entire approach toward efficiency, creating an experience that rivals some stores in terms of speed but with a far larger range.
Our advice, if you want to get the most out of the changes coming is to consider your shoppers and what experiences would most resonate with them. For example, if you experience high tourist traffic then local products will give you a unique edge that the one-size-fits-all supermarket approach can't match. Keeping beer chilled is also a great approach as most supermarkets store their alcohol at room temperature, making the product less convenient to consume soon after purchase. Chillers (and beer caves, if you want to go crazy) can turn alcohol from a planned purchase into an impulse.